Search te WileypLUS to be upd.. C Kimmet, Fi Kimmel, Financial Accounting. Be, C

Question

Search te WileypLUS to be upd.. C Kimmet, Fi Kimmel, Financial Accounting. Be, Custom for University of Akron (C Prepare MultFStep Income Statement Harry Haberdashery is a retail clothing store for men. The store operates out of a rented building in Albertville, Virginia. Shown below is the store's adjusited year-end trial balance dsted December 31, 20XS HARRY'S HABERDASHERY ADJUSTED TRIAL BALANCE DECENBER 31,20xS $19,635 31,300 14,850 1,050 Accounts Receivable Merchandise inventory Prepaid rent office supplies Office equipment Accumulated depreciation: office equipment Accounts payable Sales tax payable Capital stock Retained earnings Sales Revenue Sales returns and allowances Cost of goods sold Utilities expense Office supply expense Depreciation expense: office equipment Rent expense 35,000 10,000 12,000 2,950 15,500 18,650 190,000 2,000 76,815 4,700 930 2,350 ?,000 750 47,000 Salaries expense

Explanation / Answer

b)Gross margin % =Gross margin /net sales

             = 111185/188000

               = .5914 or 59.14%

Income statement sales revenue 190000 less:sales returns and allowance (2000) Net sales revenue 188000 less:cost of goods sold (76815) Gross margin 111185 less:operating expense Utilities expense 4700 Office suppliy expense 950 Depreciation expense-equipment 2350 Rent expense 5000 Insurance expense 750 salaries expense 47000 Total operating expense (60750) Income before tax 50435 less:Income tax expense (6950) Net Income 43485

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